Microsoft-backed (MSFT) OpenAI's compute margin has risen to roughly 70% in October from approximately 52% at the end of 2024 and about 35% in January last year, The Information reported Sunday, citing an unnamed person having knowledge of the matter.
Earlier in 2025, OpenAI prioritized lowering its server expenses to run its AI products, known as inference. The startup also launched an internal code red after the rollout of a new model from China's DeepSeep, the report said, citing an unnamed person familiar with the matter.
At current, the biggest challenge to the startup's growth and its path to artificial general intelligence is a shortage of servers, the report said.
"We cannot do it if we don't have the compute. We're so compute constrained," The Information quoted OpenAI Chief Executive Sam Altman as saying in a Thursday podcast interview. "If we had double the compute, I think we'd double the revenue right now."
Another challenge is the involvement of Alphabet's (GOOG, GOOGL) Google, which has tailored server chips that reduce its costs, while OpenAI has expensive Nvidia (NVDA) chips, The Information said.
OpenAI did not immediately respond to MT Newswires' request for comment.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)
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